HP Snaps Up Network Storage Firm LeftHand
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Hewlett-Packard Co. (NYSE: HPQ) has agreed to buy LeftHand Networks, a network storage provider, for $360 million in cash to extend its storage technology offerings for mid-sized companies.
The acquisition, which is expected to close in HP's fiscal first quarter of 2009, is subject to purchase price adjustments, HP said. LeftHand Networks, based in Boulder, Colo., is privately held and has 215 employees.
HP, known best for its printers and computers, will add LeftHand's storage software to its own offerings of storage servers. It said LeftHand's mid-range products are already certified to work with HP products and would complement its low-end and high-end storage products.
Earlier this year, HP expanded its Secure Advantage security offerings to include new storage components, and introduced a new, high-capacity storage box designed to go head-to-head with rival EMC (NYSE: EMC).
The deal also follows HP's purchase in August of technology services company Electronic Data Systems for $13.9 billion. Following that purchase, HP said it would cut roughly 24,000 jobs to integrate EDS and eliminate redundancies.
HP shares rose 19 cents at $46.43 in morning trade on the New York Stock Exchange.